A Detroit nonprofit director is facing charges after allegedly orchestrating a deed fraud scheme that swindled over 30 properties from struggling homeowners. Zina Thomas, 60, was arrested and charged with conspiracy to commit wire fraud, wire fraud, money laundering, and aggravated identity theft, the Detroit Free Press has learned.
Thomas was reportedly using her position to transfer properties from the victims, who were on the brink of tax foreclosure, to imaginary "interim owners," before selling them to third parties. To make her actions appear legitimate, she's accused of having filed fraudulent deeds, which were falsely notarized, effectively to halt foreclosures and spin a profit for herself. "This scheme targeted some of our most financially vulnerable citizens," U.S. Attorney Dawn N. Ison stated, as per the U.S. Department of Justice.
Information from the investigation revealed that Thomas even sent bogus documentation, such as fake driver's licenses, to a Wayne County Treasurer’s Office employee to disrupt the foreclosure process. According to the reports, these documents were then uploaded into the county's property tax administration system. In a statement emailed to the Free Press, Ted Phillips, the nonprofit's executive director, expressed that it's "deeply troubling" that individuals exploited their systems, but asserted that the integrity of UCHC's programs is not under scrutiny.
The grievous abuse of trust by Thomas has sparked outrage, particularly because she was tasked with protecting Detroit residents from losing their homes. Ironically, she resides in one of the properties involved in the fraudulent scheme. Special Agent-in-Charge Cheyvoryea Gibson of the FBI vowed to tirelessly investigate to bring fraudsters like Thomas to justice, as the FBI and law enforcement partners continue to shine a light on these heinous acts of fraud. "While working in a capacity to provide assistance to residents experiencing financial hardships, Ms. Thomas allegedly exploited individuals in the process of losing their homes," Gibson said, according to the Justice Department's online statement.
The case, which falls under the national spotlight for deed fraud, is the result of collaborative efforts between multiple agencies, including the FBI, the Department of Housing and Urban Development Office of Inspector General, and the Detroit Police Department, with notable aid from Wayne County's Deed Fraud Task Force. The heft of the allegations against Thomas is a stark reminder of the work to be done in combating real estate fraud, particularly in vulnerable communities where such crimes can have devastating effects. As the case moves forward, those involved in uncovering the scheme are dedicated to protecting citizens and the sanctity of homeownership in Detroit.
